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Saving and Investing Flashcards | StudBud
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Saving and Investing
Saving and Investing
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Answers
1
A savings tool with tiered interest rates
Checking
C.D.
Money Market
Savings
2
The tax you pay on the return(profit) on your investment
Property
Capital Gains
Income
Excise
3
Which is true about investments?
High Risk / Low Return
Low Risk / High Return
High Risk / High Return
High Risk / No Return
4
Earning interest on your interest
Inflation
Compound Interest
Principal
Simple Interest
5
The danger that invested money won't be worth as much in the future
Inflation Risk
Investment Risk
Tax-advantaged
Rate of Return
6
Can be quickly converted into cash
Asset
liquid
Savings
Interest
7
Savings tool that usually does not earn interest
Mutual Fund
Money Market Account
Checking Account
C.D.
8
A 401K is a ______ ______ investment
Tax Advantaged
Real Estate
Value added
Tax free
9
Save as much as possible for as long as possible at the highest rate possible
Portfolio Diversification
Pay Yourself First
Time Value of Money
Investment Philosophy
10
Which is less liquid than a Money Market Account?
Savings Account
Checking account
Cash
C.D.
11
Put money away for saving before paying your bills
YOLO
Risk / Return
Opportunity Cost
Pay yourself first
12
A savings tool that is held for a fixed period of time
Savings Account
Certificate of Deposit
Money Market Account
Checking Account
13
Giving up one thing for another
Goal
Opportunity cost
trade off
Wealth
14
Which is
more
liquid than a savings account?
Money Market Account
Mutual Fund
C.D.
Checking Account
15
A way to reduce investment risk
Diversify
Trade-off
Inflation
Invest
16
A savings tool designed to hold money with typically low interest rates
Checking
Savings
C. D.
Money Market
17
A diversified portfolio of investments
Investment Philosophy
Stock Exchange
Mutual Fund
Brokerage Firm
18
A form of lending (debt) with low interest and low risk
Speculative Investment
Bond
Stock
Index fund
19
A business that buys and sells investments for its customers
Stock Market
Credit Union
Depository Institution
Brokerage Firm
20
A share of ownership in a company
Real Estate
Stock
Asset
Wealth
21
T / F Savings tools are more secure than Cash
False
True